Government approves plan to split Polish Oil and Gas

This year the state-owned gas monopoly, Polish Oil and Gas (PGNiG) will be split into companies which would subsequently undergo privatization the government said yesterday after the Cabinet Economic Committee (KERM) approved the recommendations of the Treasury Minister. PGNiG owns the exclusive rights for purchasing gas abroad, exploration domestically, distribution and sale of natural gas. It employs 34,000 people with an annual turnover of about $1.5 billion and is the sole owner of the gas network with 6.7 million users. PGNiG in its new form would comprise of five companies, one of them in charge of gas exploration, and the remaining four responsible for distribution. Privatization will most likely begin in 2002 however the core of PGNiG would remain state-owned and would keep control over strategic pipelines and reservoirs for at least five years. (Gazeta Wyborcza, page 22, Reuters) P.S.